Atsui, Mccaul, Bipartisan Members, Introduce Bill to Boost Domestic Semiconductor Manufacturing

Press Release

Today, Congresswoman Doris Matsui (D-CA), Congressman Michael McCaul (R-TX), and a bipartisan group of members of the House of Representatives introduced the Facilitating American-Built Semiconductors (FABS) Act, a bill intended to drive long term investment into the United States for the design and manufacturing of semiconductor chips.

"As we tackle the semiconductor shortage, we need to act decisively to boost American production from research and development to the assembly line," said Congresswoman Matsui. "The semiconductor industry transcends one specific technology -- these chips are truly the fundamental building block of the 21st century economy. This legislation will build upon the work we have done to secure this critical supply chain and ensure American leadership for years to come."

The FABS Act would provide a 25 percent investment tax credit (ITC) to semiconductor companies for investments in manufacturing of the technology in the United States. The ITC could cover building costs for a semiconductor manufacturing facility or the semiconductor manufacturing equipment that would produce the chips. Additionally, the bill would provide a 25 percent ITC for companies investing in the research and design of next generation semiconductors. This incentive will help to ensure America continues to lead the world in semiconductor design.

Semiconductor chips are in everything from smartphones and vehicles to the most advanced weapons systems, and they play a role in the life of every American. For decades, American manufacturing of semiconductors has slowly decreased, while reliance on foreign nations for this critical technology has increased. With the introduction of the FABS Act and other programs in place, America can provide a comprehensive package of incentives that will keep us competitive on a global scale, secure our access to this critical technology, and advance American leadership in the research and design of leading-edge chips.

Original cosponsors of the bill include Representatives Mike Kelly (R-PA), Suzan DelBene (D-WA), Elise Stefanik (R-NY), Dan Kildee (D-MI), John Katko (R-NY), Elissa Slotkin (D-MI), and Peter Meijer (R-MI).

Source